Glossary


Life Insurance Terms

Investment Terms

O

Overinsurance

When the insurance policy provides too much income/benefit that the policy owner/life insured no longer has the incentive to return to work.

Odd lot

Any number of securities that represents less than a board lot.

Open-end fund

An open-end mutual fund continuously issues and redeems units, so the number of units outstanding varies from day to day. Most mutual funds are open-ended.

Option

The right or obligation to buy or sell a specific quantity of a security at a specific price within a stipulated period of time.

Over-the-counter market

A securities market that exists for securities not listed on stock exchanges. Bonds, money market securities and many stocks are traded on the over-the-counter market.

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